Dozens of people in San Jose and the South Bay were victims in a nationwide Internet scam orchestrated by a Washington state man who told would-be investors that he needed money upfront to claim a large inheritance, according to federal prosecutors.

Prosecutors allege Scott Alan Stuart, 50, received more than $3.2 million in the fake-inheritance scam from people in many states, according to a federal complaint. Authorities say people sent from $500 to $45,100 to Stuart's account at a credit union in Bellingham, Wash.

Stuart told would-be investors that his father had made millions of dollars building an oil pipeline in Nigeria and his inheritance was stuck in a Canadian bank, authorities said. Stuart told victims that if he collected enough money to pay the taxes he would be able to access the $30 million and investors would get a large return on their investment. The indictment, filed in federal court in Seattle, alleges there was no inheritance or Canadian bank account. Federal prosecutors allege Stuart has instead been denied entrance to Canada.

The alleged scam began no later than January 2003 and continued through June 2009, according to a grand jury complaint filed in federal court.

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Emily Langlie, a spokeswoman for the U.S. Department of Justice, said dozens of people in the San Jose area were victimized in the scam. She added that prosecutors had not yet broken down how much money those in the South Bay lost.

According to the complaint, one San Jose resident wired money on five different occasions totaling about $50,000 from 2003 to 2005. The complaint, which identified victims by initials only, cites victims from Massachusetts, Oregon, Virginia and Arizona. Prosecutors say Stuart encouraged his victims to secure loans from acquaintances in order to enhance his chances of collecting his inheritance and repaying them.

In one case, Stuart promised to pay back $210,000 for a loan of $21,000, according to the complaint.

According to a court document filed July 19, prosecutors say Stuart continued his scam after being contacted by federal investigators last year and made contact with one of his victims as recently as this month.

Authorities also have charged Wayne Charles Sewell, 32, of Ferndale, Wash., with taking part in the conspiracy. According to the indictment, Sewell collected more than $150,000 wired by investors to Stuart. Several investors sent as much as $100,000 to the pair and persuaded their friends to participate, believing that if Stuart had just a bit more money he would be able to access the inheritance.

Stuart has been detained at a federal detention center in Seattle pending trial.

The case was investigated by U.S. Immigration and Customs Enforcement and Internal Revenue Service Criminal Investigation.

Anyone with information about the case may contact federal law enforcement authorities at 425-304-1643.